by Dean Hartwell
A recent report by the
National Governor’s Association shows that the states collectively have a
deficit of about $40 billion. About half of the states have raised taxes
in this fiscal year, which began on July 1.
Since most states must balance their budgets each year, they will have to find
a way to raise the money. But even the tax raises will not be
enough. The Senate has proposed giving $9 billion to the states for
Medicaid assistance, but the House has stalled the plan.
What role should the federal government play in helping the states?
Political theorists have pondered the relationship between the states and the
federal government, known as federalism, since the early days of our
nation. Thomas Jefferson led a group that gave power to the states with
very little federal influence. An opposing party, known as the
Federalists, wanted most power to rest with the federal government.
What we need now is a policy on federalism that keeps up with the times in
which we live. If the federal government is to handle the
responsibilities given to it under the Constitution, it will have trouble
paying for them.
Consider the money the federal government needs to protect us from
terrorism. Add to this need the usual federal expenditures of health
care, the interest on the national debt and Social Security combined with the
Bush tax cuts and it is little wonder the federal deficit is over $100 million.
The federal government should give an incentive for states not to ask it for
financial help. In exchange for promising not to seek federal assistance,
each state should be able to create its own laws on any topic not mentioned in
the Constitution or covered by a Supreme Court decision.
For example, the state of
Call it the New Federalism. Or, better yet, Federalism 4.0 - one version
for every century the federal government has interacted with the states.